Multiple Choice

-Refer to the information above.Suppose that a 10% reduction in spending for all public goods is mandated.This means that the level of
A) public good 1 will become optimal.
B) public good 2 will move towards the optimal level.
C) public good 3 will move towards the optimal level.
D) public good 2 will move away from the optimal level.
E) public good 1 will move towards the optimal level.
Correct Answer:
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